According to JPMorgan, if the Trump administration moves forward in a US strategic crypto sanctuary that requires Congressional approval, it is unlikely to be approved.
“I don’t think approval of a US strategic cryptocurrency reserve is the most likely scenario (assuming Congressional approval is required), so our minds are less than 50%,” JP Morgan Managing Director Nikolaos Panigirtzoglou told Block.
For crypto-precincts, digital assets stockpiles could be similar to strategic petroleum reserves that serve as a repository of inflation hedges and value. When the US established the Strategic Oil Reserve in 1975, it relied on Congressional approval of the Energy Policy and Conservation Act, which President Gerald Ford later signed into law.
President Trump is expected to announce a strategic crypto sanctuary on Friday, as confirmed by U.S. Secretary of Commerce Howard Lutnick.
Bitcoin, the world’s most popular cryptocurrency, is expected to become a major component of the reserve, but Trump also suggested that Ripple’s XRP, Solana’s Sol and Cardano’s ADA would play a role. “Bitcoin is one thing, and then I think other currencies, other crypto tokens, will be treated differently. Positively, but in a different way,” Rutnick told the media.
“By seeking coins like XRP and ADA, it’s very likely that (Trump) is trying to compromise on those coins and not include them to make Koyn more affordable,” said Stephen Lubuka, head of Swan Private at Swan Bitcoin. “He doesn’t always ask immediately what he is going to get.
According to JPMorgan’s analysis, strategic cryptographic protected areas are unlikely to hold XRP and ADA, even if approved. “If the US strategic crypto sanctuary is ultimately approved, it will be difficult to include small tokens outside of Bitcoin and Ethereum,” Panigirtzoglou told the block. “As discussed in the report, including such tokens would raise more concerns about risk and volatility.”